Debt Free Legacy

What are Assets?

What are Assets?

by Elaine Bechtel

Deuteronomy 8:18 (NAS) “But you shall remember the Lord your God for it is He who is giving you power to make wealth, that He may confirm His covenant which He swore to your fathers, as it is this day.”

Proverbs 10:22 (NAS) “It is the blessing of the Lord that makes rich, and He adds no sorrow to it.”

If you ask an accountant what assets are, they will tell you that assets are items of value; which is a true statement. To Christians it is much more. Assets include our time, talent and resources. Bill & Maureen Sitter, in their book Financial Freedom in 7 Weeks Plus, define prosperity as “Having all the time, talent, and resources needed to accomplish what God has called us to do”. This broadens the scope of what assets are, and speaks to where your heart is. What will you classify as an asset in your life?

In the accounting realm assets come in two types: Liquid and Non-Liquid. Liquid assets are those that can be converted into cash in 1 year or less. A partial list of examples are:

  1. Cash in your wallet.
  2. Cash in your checking or savings accounts.
  3. Stocks or Bonds.
  4. Life insurance cash values.

These items when totaled equal your liquid assets. Non-Liquid assets are those that take longer than 1 year to convert to cash. A partial list of examples are:

  1. Market value of your home or land.
  2. Net worth of a business.
  3. Vehicles as in cars, RV’s, ATV’s, Jet skis, boats, etc.
  4. Furniture.
  5. Collections like stamps, coins, crystal etc.
  6. Retirement fund balances.
  7. Money due to you from others.

These would equal your Non-Liquid Assets.

Together, Liquid and Non-Liquid assets are your total assets. This information is used to determine your net worth, which will be discussed in another article.

If you have more assets than you need, consider selling any surplus or idle assets to reduce your debts, so you can achieve your financial goals.

Practical Advice for Potential Business Start-Ups and the Self Employed

Practical Advice for Potential Business Start-Ups and the Self Employed

by Debt Free Legacy

Practical Advice for Potential Business Start-Ups and the Self Employed

For almost 20 years we have provided training geared to help people achieve and sustain genuine Financial Freedom, using God’s principles coupled with practical advice.  Meanwhile I (Bill Sitter) was operating a small business and employing these same concepts.  During this time my wife and I, and our volunteer small group leaders often encountered potential entrepreneurs and self-employed people who lacked the basic financial wisdom to succeed.  There are scores of books and courses devoted to business start-ups and even to offer self employed guidelines.  This short article will attempt to outline a few foundational principles that may spell the difference between a successful business venture, using Godly principles, and a dismal failure.

First steps must involve getting a very good handle on your personal and family financial status.  Sounds simple and obvious but all too often we speak with ladies and gentlemen who are ready to jump into a business opportunity without a firm grasp of their own finances.  This can be rectified by first completing the exercises in Chapters 1 – 7 of the “Legacy Edition of Financial Freedom in 7 Weeks Plus.”  Doing so will ensure that singles and couples have an understanding of God’s principles for money and business.  Short and long term goals are written down as part of this training, to clearly identify targets and timelines, for all involved parties.

In the process of completing this 7 week study (individually or in a small group) you will learn how to prepare all the following financial forms:  Income and Biblical Giving, Debt Repayment Schedule, List of Assets, List of Liabilities, Personal Balance Sheet & Net Worth Statement, Estimated Monthly Living Expenses, and a Cash Flow Control system.

“Guidelines for the Self-Employed” are provided in Chapter 2.  Over the years we’ve been shocked at the number of business owners who lack an understanding of gross revenue (gross business receipts) and real “increase”.  These few pages in the workbook are a MUST for anyone considering self-employment or a small business launch.

God’s Word – the Bible – gives us over 2,000 scriptures relating to finances and the proper stewardship of the resources we receive from God.  These include instructions on honest business practices, fair treatment of employees, and even advice that relates to providing excellent customer service.  God wants men and women to succeed in the business world and to be salt and light to a hurting and lost world.  So, if God is leading you to run a business, small or gigantic, or to join the ranks of the self-employed, then embrace these two scriptures from Proverbs 16:3 and 21:5 (NIV):

        “Commit to the Lord whatever you do, and your plans will succeed.”
        “The plans of the diligent lead to profit as surely as hast leads to poverty.”

We encourage you to maximize your understanding of the business venture you are considering.  Seek wise, godly counsel.  The “Legacy Edition of Financial Freedom in 7 Weeks Plus” can be used for individual study or with a small group.  It will provide an excellent starting point for any potential entrepreneurs or those considering self-employment opportunities.